Indonesian Rupiah Weakens as Market Anticipates BI Rate Decision

Currency Movement and Market Expectations

The Indonesian rupiah started the day on Tuesday, December 16, 2025, at Rp16,670 per US dollar, representing a slight weakening of 0.02% from the previous day's close of Rp16,667 ¹

. This movement comes as financial markets prepare for the Bank Indonesia (BI) monetary policy committee meeting, which is expected to conclude today or tomorrow.

Regional Currency Performance

Asian currency markets showed mixed performance during the morning session. The Taiwanese dollar experienced the most significant decline in the region, falling 0.26% against the US dollar ²

. Other regional currencies showed varied movements, with some experiencing slight gains while others declined marginally.

Market Expectations for BI Rate Decision

The financial markets are currently focused on the upcoming Bank Indonesia rate decision. Most economists predict that BI will maintain the current BI Rate of 4.75%, following five rate cuts earlier in the year ³

. This expectation comes as both Indonesia and the United States have been adjusting their monetary policies, with the Federal Reserve cutting rates three times this year.

Technical Analysis of Rupiah Movement

As of 09:00 WIB, the rupiah had weakened by Rp24 or 0.14% to Rp16,691 per US dollar in the spot market ³

. The Jisdor rate also followed a similar trend, declining by Rp24 or 0.14% to Rp16,693 per US dollar. The currency's movement appears to be influenced by both domestic monetary policy expectations and global dollar strength.